Microsoft, Sony, and Nintendo have been battling for supremacy in the console wars for decades. Sony has been the undisputed leader in recent years, outselling the Xbox Series X|S by a wide margin with the PlayStation 5. Is Xbox really out of the running, though?
Microsoft may yet have a chance to regain some market share, according to a recent hearing before the Federal Trade Commission (FTC). Microsoft executives testified that the acquisition of Activision Blizzard by their business will not lessen competition in the console industry. They argued that the acquisition of Activision Blizzard will not alter the duopoly that already exists between Xbox and PlayStation.
Microsoft further made the case that the acquisition will genuinely help customers. According to them, it will open up new possibilities for cross-platform gaming and enable them to release more games on more platforms.
Microsoft’s testimony shows that the FTC is not persuaded that the acquisition will impair competition, even if it is still debating whether to accept it. In the console wars, if the deal is authorized, it might give Xbox a much-needed boost.
There are further indications that Xbox might be making a comeback beyond the FTC hearing. The business has revealed that its Game Pass service now has over 20 million users. Users of Game Pass have access to a collection of games, both recent and vintage, through a subscription service. The program has been a huge success for Xbox and has aided in bringing in new players.
Xbox is also actively pursuing the cloud gaming industry. Users can stream games to their devices without first downloading them thanks to the company’s xCloud service. Although cloud gaming is still in its infancy, it has the potential to completely change how we play video games. Xbox may have a substantial competitive advantage over rivals if xCloud is introduced effectively.
Naturally, it is still too early to declare Xbox the true loser of the console wars. Although Microsoft is making some significant moves that could help them close the gap, Sony is still the market leader. The FTC hearing and Game Pass’s performance are both encouraging indicators for Xbox and indicate that the firm is not giving up easily.
Who will prevail in the console wars in the end remains to be seen. One thing is for certain, though: the competition is tough and will only become more so in the coming years.
